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snow_lady [41]
3 years ago
6

A firm has issued $5 par value preferred stock that pays a $0.80 annual dividend. The stock currently sells for $9.50. In calcul

ating WACC, what should one use for the value of the firm's preferred stock
Business
1 answer:
Aloiza [94]3 years ago
7 0

Answer:

$9.50

Explanation:

In the given case, the value of the firm preferred stock is equal to the market value price or selling price of the preferred stock

In mathematically,

Value of the firm preferred stock = market price or selling price of the preferred stock

Value of the firm preferred stock = $9.50

It only consider the market price of the preferred stock

All other information which is given is not relevant. Hence, ignored it

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On january 1st year 1, a company issues $410,000 of 7% bonds
storchak [24]

Answer:

The appropriate journal entries to record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021 are:

White Water journal entries

1-Jan-21

Debit Cash $382,141

Credit Discount on Bonds Payable $27,859

($410,000-$382,141)

Credit Bonds payable  $ 410,000

30-Jun

Debit Interest Expenses $ 15,286

($382,141 x 8%/2)  

Debit Discount on Bonds Payable $736

Credit Cash $14,350

($410,000 x 7%/2)  

31-Dec

Debit Interest Expenses $15,315.08

[($382,141 + 736) x 8%/2]

Credit Discount on Bonds Payable $965.08

($15,315.08-$14,350)

Credit Cash $14,350

($410,000 x 7%/2)

yo

3 0
2 years ago
John Deere is a manufacturer of agriculture equipment. Deere supplies replacement parts to dealerships across the globe. John De
Marrrta [24]

Answer: Internet of Things

Explanation:

The above scenario explained in the question shows that John is utilizing the Internet of Things.

Internet of Things (IoT) simply refers to the internet-connected objects which can be used to gather data over a wireless network and also transfer them.

The Internet of things is vital in this case as it helps to to have devices that self report in real-time, and improving efficiency.

5 0
2 years ago
Cosmetologist job requirements with bullet points
GarryVolchara [31]

Answer:

. Maintains supplies by checking stock; anticipating needs; placing orders; verifying receipt.

. Prepares hair for styling by analyzing hair condition; shampooing and treating hair.

. Conditions hair and scalp by applying treatments.

. Plans desired effect by studying facial features; examining potential styles; conferring with customer; making recommendations.

. Produces desired effect by arranging, shaping, curling, cutting, trimming, setting, bleaching, dyeing, and tinting hair.

. Maintains quality service by following organization standards.

. Maintains safe and healthy conditions by following organization standards and legal regulations.

. Obtains revenue by recording or collecting charges.

. Maintains technical knowledge by attending educational workshops; reviewing publications.

. Contributes to team effort by accomplishing related results as needed. Skills/Qualifications: Listening, Supply Management, Analyzing Information ,  . Customer Focus, Client Relationships, Organization, Creativity, Attention to Detail, Confidentiality, Professionalism, Verbal Communication

8 0
3 years ago
Byron Corporation forecasts that its income will be $21,000 next year. The firm pays out 30 percent of earnings as dividends to
noname [10]

Answer:

RE break point = $24500

Explanation:

21,000 net income

30% OF Earnings as dividends

21,000 x 30% = 6,300 dividends

Retained Earnings (assuming no previous beginning value)

21,000 - 6,300 = 14,700

RE break point = 14,700/0.6 = 24500

What does the $24,500 mean?

This mean that the company can raise financing for this ammount without changing their capital structure (60% equity 40% debt)

If the company wants to finance for more, it will need to raise new shares or chance their capital structure, and therefore the WACC will change

8 0
2 years ago
Consider a game with two players who cannot​ communicate, and in which each player is asked a question. The players can either a
AveGali [126]

Answer:

Each player can adopt a T for T strategy or a trigg er strategy. It is important to state that these strategies were not possible in a one-time game.

The equilibrium is that both players answer honest and each makes normal profit.

Both games, the P risoners' dilemma and this game, have a cooperative equilibrium in the long term. If a player employs a trig ger strategy or a T for T strategy, they can reach the cooperative honesty/honesty outcome.

In a short term, game equilibrium is not likely due to lying is more profitable than answer honestly deploying stated strategies.

Reference: NomCab HSEONE.  “PS8- solution.” Academia , 2019.

6 0
3 years ago
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